Refinancing a Home Written Assignment

1. The payment for the 15-year mortgage is $488.46 more than the payment for the 30-year mortgage.
2. The interest rate for the 15-year is 3.125% and for the 30-year it is 3.375%. This equates to $48,727.88 paid
for a 15-year mortgage and $113,529.58 for a 30-year mortgage.
3. For an extra payment of $100 dollars a month, the 30-year mortgage is paid off 5 years early while the 15-
year mortgage is paid off 3.5 years earlier.
4. In order to pay off the 30-year mortgage in 15-years, an extra payment of $512 dollars is required per
month. This equates to a payment of $1,360.47 to pay off the loan early. This is 23.54 more than the 15-
year payment. This is due to the slightly higher interest rate for the 30-year mortgage.

Things to consider when buying a home are:

How much can you afford to pay a month right now?

What lender can you get the best interest rate with?
At any point in the future, can you pay more for the payment? As we have seen by the calculations, even
100 dollars more a month can make a big difference.